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Strategies & Market Trends : Canadian Options -- Ignore unavailable to you. Want to Upgrade?


To: Porter Davis who wrote (957)4/5/1998 6:04:00 PM
From: Gary McCoy  Read Replies (1) | Respond to of 1598
 
Hello to all

I just found this thread and have only recently been getting familiar with option trading.

I trade stocks through TD Micromax and was wondering if anyone on this thread could explain in detail what "OPEN" or "CLOSED" position means when trading options.

Also, how is a call option exercised before the expiry date?

Thanks for the help and am looking forward to try option trading.

Gary



To: Porter Davis who wrote (957)4/6/1998 8:06:00 PM
From: Porter Davis  Read Replies (1) | Respond to of 1598
 
>>Monday's opening in Ballard should be interesting...

Now, I know it's unseemly to quote oneself, but this was just too prophetic, but not for what you might expect. At the opening bell this morning, with ABX up a dollar, BLD $2 higher, New York on the gallop en route to a snappy 100 point gain in ten minutes, I tried to enter an order on my Torex (equity trading computer) and nothing! The computer just froze. This was not the first time, but under the conditions, I literally felt like I was in a car roaring downhill with no steering and no brakes. I have huge positions with huge risks and the inability to access the underlying equities is unacceptable. You have to understand, it's not like I can run to another machine and trade--no, this system is so sophisticated that I have to log on with my secret code, and if my machine crashes and won't let me sign off, it won't accept me on any other machine. One minute to realise what was happening, two minutes to get someone to call a tech, three minutes for him to arrive, and eight minutes for my machine to be re-booted. So, approximately 14 minutes at one of the most critical periods of the day with no control over my positions. We're talking real money here. I plan on writing Fearless F**king Fleming personally when I cool down. Heh--maybe I won't wait.

Add to that the fact that when I checked off my positions this morning, I discovered five lines that didn't agree with the clearing corp's numbers. One discrepancy is unusual, five is almost unheard of for me. I mean, when it's my trades and my money I keep pretty good track of my positions. It turns out that there had been multiple input errors on Friday. Everyone's allowed to have a bad day, but the exchange staff must have been auditioning for the opening of "Lost in Space" that night. One mistake was so bizarre and obscure that it took until almost 4:00 to unravel it. Remember, an 'out' trade of twenty contracts on a stock that moves ten and 20 bucks a day can get real serious real quick. It turned out my numbers were correct, but not knowing all day did nothing to improve my disposition. It's tough enough to trade Ballard without the problem of not knowing within 2000 shares what your position is.

I hope all of you had a better day than I did. End of venting.

Happy trading.

Porter